The business area includes the Group’s operations in Finland and the three Baltic States.

Third quarter

Compared with the third quarter previous year, net sales were 14 percent higher and amounted to SEK 559 M (489). The tonnage was in line with previous year and higher steel prices, on average, and mix effects contributed to the higher sales. The operating result improved to SEK 26 M (23), primarily due to inventory gains of SEK 4 M (-). Adjusted for this effect, the underlying operating result decreased to SEK 22 M (23).

The distribution business in Finland delivered a result in line with previous year in the period despite a lower tonnage volume and margin as a result of the development in thin sheets. The production business in Finland showed higher net sales while volume, gross margin and result were in line with previous year.

First nine months

Net sales for the first nine months increased by 9 percent compared with previous year, amounting to SEK 1,753 M (1,604). The operating result decreased to SEK 73 M (90) and, adjusted for inventory gains, the underlying operating result decreased to SEK 61 M (79). The decrease is mainly attributable to the provision for an anticipated bad debt and adjustment of inventory in the Baltics of SEK -12 M that impacted the second quarter. In addition to this, the distribution business is still affected by price pressure on thin sheets in the Finnish market, which had a negative effect on gross margin. Tonnage decreased by 1 percent compared with the same period in 2017.

Business Area Finland & Baltics sales growth and underlying operating result per quarter